UC RUSAL announces results for the year ended 31 December 2015
Key highlights
· In the fourth quarter of 2015 London Metals Exchange (“LME”) aluminium price reached an average of USD1,495 per tonne, demonstrating a 24.0% decrease compared to USD1,968 per tonne in the fourth quarter of the prior year. The realized premiums over the LME aluminium price were down to an average of USD179 per tonne in the three months ended 31 December 2015, 58.3% lower than USD429 per tonne in the fourth quarter of 2014.
· The Company’s revenue for the year ended 31 December 2015 decreased by 7.2% to USD8,680 million as compared to USD9,357 million for 2014. Revenue in the fourth quarter of 2015 decreased by 25.6% to USD1,857 million as compared to USD2,496 million in the same quarter of 2014 with average realized price decreased by 28.5% to USD1,729 per tonne for the last quarter of 2015 as compared to USD2,419 per tonne in the same period of 2014.
· RUSAL recorded an Adjusted EBITDA of USD2,015 million with Adjusted EBITDA margin of 23.2% for the year ended 31 December 2015 as compared to USD1,514 million with Adjusted EBITDA margin of 16.2% for the preceding year. In the fourth quarter of 2015 Adjusted EBITDA decreased by 27.1% to USD306 million as compared to USD420 million in the third quarter of 2015 and decreased by 53.0% as compared to USD651 million in the fourth quarter of 2014.
· The aluminium segment cost per tonne decreased by 15.6% to USD1,410 in the fourth quarter of 2015 in comparison with USD1,671 per tonne in the same period of 2014.
· The Company achieved Adjusted Net Profit and Recurring Net Profit of USD671 million and USD1,097 million, respectively, for the year ended 31 December 2015 as compared to USD17 million and USD486 million for the prior year. In the fourth quarter of 2015, the Company achieved Adjusted Net Profit of USD55 million and Recurring Net Loss of USD40 million.
· During 2015 the Company decreased its Net Debt and derivative financial liabilities by USD771 million that decreased the leverage ratio to below 3.0:1 as at 30 June 2015 resulting in the lower interest rate margin and cancellation of cash sweep mechanism starting from September 2015.
Aluminium market outlook for 2016
RUSAL expects that the global aluminum demand will continue its growth at a healthy 5.7% during 2016 to 59.6 million tonnes or by another 3 million tonnes as a result of a strong demand growth in North America, Europe and Asia. Chinese growth is expected to continue to be strong at 7% YoY in 2016 to 31 million tonnes. Transportation sector will continue to be the biggest growth contribution in 2016 with half of 1.5 million tonnes growth followed by construction and electrical/consumer durables and packaging sectors.
On the supply side, Chinese aluminium production is forecasted to grow at the slowest pace over the last 5 years by 4.8% in 2016 compared to 5 year average growth at 12% and 9.6% in 2015.
The current “all-in” aluminium price means that around 5 million tonnes of smelting capacity ex-China continues to be loss-making. Consequently, the ROW aluminum production is forecasted to decline by 100 kt in 2016 as compared to 2015 to 26.2 million tonnes. As a result, the ROW market deficit will widen to 2.4 million tonnes in 2016 from 1.2 million tonnes in 2015.
Chinese semis export growth is expected to slow down further in 2016 as compared to 2015 on lower price arbitrage due to a much lower premium expectation in ROW and higher Shanghai Future Exchange price linked to local capacity curtailments.
As expected, the total primary market balance will turn into deficit of 1.2 million tonnes in 2016 as compared to 0.6 million tonnes of surplus in 2015.
Revenue from sales of primary aluminium and alloys decreased by USD544 million, or by 7.0%, to USD7,279 million in 2015, as compared to USD7,823 million in 2014, primarily due to 9.8% decrease in the weighted-average realized aluminium price per tonne driven by a decrease in the LME aluminium price (to an average of USD1,663 per tonne in 2015 from USD1,866 per tonne in 2014), as well as a decrease in premiums above the LME prices in the different geographical segments (to an average of USD281 per tonne from USD380 per tonne in 2015 and 2014, respectively).
Revenue from sales of alumina increased by USD26 million, or by 4.6%, to USD595 million for the year ended 31 December 2015 as compared to USD569 million for the previous year. The increase was mostly attributable to 6.1% growth in the average sales price partially offset by a 1.2% decrease in alumina sales volume.
Revenue from sales of foil decreased by 10.9% to USD270 million in 2015, as compared to USD303 million in 2014, primarily due to a 3.2% decrease in the weighted average sales price and 7.9% decrease in sales volumes.
Revenue from other sales, including sales of other products, bauxite and energy services decreased by 19.0% to USD536 million for the year ended 31 December 2015 as compared to USD662 million for the previous year, due to a 48.8% decrease in sales of bauxite and a 11.3% decrease in sales of other materials.
Total cost of sales decreased by USD1,008 million, or by 14.0%, to USD6,215 million in 2015, as compared to USD7,223 million in 2014. The decrease was primarily driven by the continuing depreciation of the Russian Ruble and the Ukrainian Hryvnia against the US Dollar by 58.7% and 83.3%, respectively, between the reporting periods.
Cost of alumina decreased in the reporting period (as compared to 2014) by USD130 million, or by 15.1%, primarily as a result of a decrease in alumina transportation costs following significant Russian Ruble depreciation and a slight decrease in tariff.
Cost of bauxite decreased by 10.9% for the year ended 31 December 2015 as compared to the same period of prior year, due to a decrease in purchase volume.
Cost of raw materials (other than alumina and bauxite) and other costs decreased by 13.8% due to the lower raw materials purchase price (such as raw petroleum coke by 21.7%, calcined petroleum coke by 10.4%, raw pitch coke by 11.1%, pitch by 3.2%) and lower purchase volume in 2015 as compared to 2014.
Energy cost decreased in 2015 by 12.9% to USD1,680 million compared to USD1,929 million in 2014 primarily due to the continuing depreciation of the Russian Ruble against the US Dollar.
Комментарии